Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Levels to watch: FTSE 100, DAX and S&P 500

It looks like the sellers are taking back control, after rallies yesterday fizzled out. 

Market data
Source: Bloomberg

FTSE 100 turns lower again

The FTSE 100 bounce from the lows of the week seems to have run out of steam at 7409, and now equities are turning lower once more. Downside targets lie at 7360, and then the all-important 7300 zone.

Only a break through here really changes the picture from consolidation to bearish move. A recovery needs to reclaim 7400 to then move on and challenge resistance at 7450. 

DAX strength peters out

Pre-European Central Bank (ECB) strength seems to have fizzled out for the DAX here, with the index moving lower from the crucial 12,300 level. Both 12,032 and then 11,900 come into play from here, with the loss of the latter potentially leading to heavier losses in coming weeks.

A close back above 12,300 would reverse the bearish view, and leave the index free to challenge 12,400 and higher, for instance the 100-day simple moving average (SMA) at 12,462.

S&P 500 still stuck low

Despite attempts to rally, the S&P 500 index remains stuck below the gap down from Sunday. It looks like momentum to the downside is gaining strength, although bears will need to push below the 2450 level. Below this 2420 comes into play.

A break above 2480 is needed to put the index back on an upward footing. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer